Good day everyone,
I have updated the Titan Node - Start Up Grant to reflect a new change.
All recipients of the grant must set their reward cut to 0% for the duration of the grant and must call reward every round.
After some deep thinking about the long term success of the grant I’ve decided that it needs to implement a win-win solution.
Both the grant winners and grant sponsors need to feel incentivized to participate.
By setting the reward cut to 0%, sponsors will retain their LPT inflationary earnings equal to the amount they would get from self delegating.
The small benefit to a sponsor will be the potential upside of winning tickets (although potentially very small) that a grant applicant will earn and share with the sponsor as they will likely be less diluted than if they were self delegated.
This solves the first problem of trying to maintain or encourage new sponsors to supply capital for the grant.
The other side of the coin is the grant applicant. The entire goal of the program is to encourage delegators from outside the grant sponsors and even outside of the community to select the applicant’s node as a suitable choice for delegating. There is great incentive to a new delegator to see a 0% reward cut.
This may come at a cost to the applicant as the cost to call reward still remains (although much less on Layer 2) but hopefully with more stake this provides the ability to win more tickets and the tickets should cover the cost of calling reward.
In the end this provides a win-win situation and I think the Livepeer network can continue to grow in strength because new and highly capable nodes have the ability to be activated and jump start their operations.
This program also encourages new members to take part in leadership positions and bring their unique talents to their nodes and the community.
I hope this explains the reasoning for my changes to the Start Up Grant and I hope you have a wonderful day.